SmileDirectClub Investor Presentation Deck slide image

SmileDirectClub Investor Presentation Deck

ā— ā— Gross margin. Gross margin for the quarter was 74%, a 323bps increase sequentially. Gross profit was up 15% sequentially. On COGS, we are making good progress on manufacturing automation with our 2nd Gen machines now live and producing approximately 60% of our aligners. We plan to increase that percentage significantly over the course of the year, and we expect over 90% by the end of Q2. As we have often stated, we believe streamlining our cost profile through operational efficiencies, will not only improve our margin profile, but more importantly, will provide a consistently superior customer experience that meets our expectations and upholds our brand promise. Our long-term gross margin target of 85% of revenue remains intact. smile DIRECT CLUB III.1 73% 70% 54% Q1 2020 77% Q3 2019 Gross margin % Q4 2019 Q2 2020 70% Q3 2020 74% Q4 2020 10
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